Dawson Partners acquires discounted portfolio as liquidity needs reshape institutional strategies
A US$1bn portfolio sale by the Hong Kong Jockey Club to Toronto-based Dawson Partners has sent ripples through Asia’s asset allocation landscape, marking one of the largest disposals of its kind in the region.
According to Bloomberg, The Jockey Club, Hong Kong’s largest taxpayer and holder of multiple exclusive legal betting licences for horse racing and football wagering, began the process earlier this year.
The sale reflects a growing trend among Asia’s limited partners—pension funds, sovereign wealth funds, and family offices—who are increasingly seeking exits through the secondary market to access capital before fund expiration.
Buyers in these transactions often require discounts in exchange for liquidity, a dynamic that has become more pronounced since the private equity fundraising peak four years ago, as investors remain cautious about liquidity constraints.
Dawson Partners, founded in 2015, managed approximately US$20bn in assets at the end of 2024 and employs more than 200 people globally, with offices in London and New York.
The firm’s co-founders, Yann Robard and Michael Gubbels, bring experience from the Canada Pension Plan Investment Board, Ontario Teachers’ Pension Plan, and the Ontario Municipal Employees’ Retirement System.
Secondary market pricing faces unique challenges, particularly the time lag between net asset value assessment and the actual transfer of fund interests—a gap that can extend six months or more and may result in valuation adjustments.
If these adjustments are misaligned, transactions can fall through.
According to Wen Ting Geok, head of Asia private equity at Mercer, private credit and infrastructure secondaries typically trade at 5-10 percent discounts, venture funds at around 20 percent, and real estate funds at roughly 30 percent.
Representatives from the Jockey Club, Dawson, Jefferies, and Blackstone declined to comment.
Earlier this year, China Investment Corp., the nation’s sovereign wealth fund, considered offloading US$1bn in positions with firms such as Carlyle Group Inc. and KKR & Co. to reduce US holdings, but ultimately withdrew the sale, Bloomberg reported in June.
The transaction, which included investments in funds of Blackstone Inc. and other buyout firms, was completed at a single-digit discount to the portfolio’s net asset value, according to people familiar with the matter.
Jefferies Financial Group Inc. advised on the deal.
